Amit Shah Calls for Expansion of Loan Facilities to PACS Under Agriculture Infrastructure Fund

Union Cooperation Minister Amit Shah urged swift action to expand loan facilities for Primary Agricultural Credit Societies (PACS) under the Agriculture Infrastructure Fund (AIF). This initiative aims to enhance PACS' financial health. Shah reviewed the plan to establish the world's largest cooperative food grain storage network, stressing PACS' crucial role in this scheme.

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Shah highlighted the importance of integrating PACS into the food storage initiative. "It is necessary to make PACS an integral part of this scheme so that the financial viability and social effectiveness of PACS can be ensured," he stated. The minister directed the Ministry of Food and Public Distribution and the Food Corporation of India (FCI) to map warehouses nationwide for smooth implementation based on regional needs.

Cooperative Supply Chain Development

The meeting concluded with a decision for states to involve more PACS at their level in the scheme. State-Level Marketing Federations should also be linked to develop a complete cooperative supply chain. Shah urged all organisations to coordinate effectively, ensuring timely implementation to achieve Atmanirbhar Bharat and Sahkar Se Samriddhi goals.

Shah instructed FCI, National Cooperative Consumers Federation (NCCF), National Agricultural Cooperative Marketing Federation (NAFED), and State Warehousing Corporations to connect PACS with as many warehouses as possible. This connection aims to enhance the cooperative supply chain's efficiency and reach.

Economic Progress and Employment

The minister emphasised two key indicators of India's economic progress: Gross Domestic Product (GDP) and employment generation. The food storage scheme aims to bolster both by increasing PACS' income and creating rural job opportunities. This dual focus is expected to contribute significantly to India's economic growth.

The AIF, launched in 2020, provides medium- to long-term debt financing for agricultural infrastructure development nationwide. Initially set for a ten-year period from 2020-2030, it has been extended to 2032-33. This extension reflects the ongoing commitment to strengthening agricultural infrastructure.

Meeting Participants and Current Statistics

Ministers of State for Cooperation Krishan Pal Gurjar and Murlidhar Mohol, along with officials from various ministries and institutions, attended the meeting. These included representatives from the Ministry of Cooperation, Food and Public Distribution, Consumer Affairs, FCI, NABARD, National Cooperative Development Corporation (NCDC), among others.

According to the National Cooperative Database Portal, India currently has over 1 lakh PACS. This extensive network plays a vital role in supporting rural economies through credit facilities and agricultural support services.

This initiative aims to strengthen India's agricultural sector by enhancing storage capabilities and improving financial conditions for PACS. By doing so, it seeks to create a robust framework that supports economic growth and employment in rural areas.

With inputs from PTI